Housing sales surge 9%, office leasing up 43% in first three months of 2024, says report

The residential market in India has been on a steep recovery path after the pandemic, with positive homebuyer sentiments and a supportive economic environment driving market demand to successive highs in subsequent years. Housing sales have risen by 9 per cent annually, while office demand increased 43 per cent during the January-March period in the top eight cities based on better demand for luxury homes and premium workspace, property consultant Knight Frank India said in its latest report.

The report, ‘India Real Estate: Office and Residential Report (January-March 2024)’, noted that house prices surged in the range of 2-13 per cent during January-March in eight prominent cities – Delhi-NCR, Mumbai, Chennai, Kolkata, Hyderabad, Bengaluru, Pune and Ahmedabad. Office rent grew by 1-9 per cent. Housing sales rose to 86,345 units in eight major cities in January-March from 79,126 units last year. Office space leasing increased by 43% to 16.2 million sq ft from 11.3 million sq ft in the same period, the report noted.

Mumbai witnessed the highest sales volume and YoY growth, with 23,743 units sold in Q1 2024, marking a 17% increase from the preceding year. The surge was predominantly driven by a 259% rise in the sales of units priced above Rs 10 million compared to the corresponding period in the previous year (Q1 2023). Sales volumes in Hyderabad grew by 15% YoY, followed by Pune at 14% YoY during the quarter.

Bengaluru topped the office space market, securing the top position with 3.5 mn sq ft of transactions, constituting 22% of the total office take-up.

“The real estate market experienced another exceptional period characterised by robust performances in both the office and residential sectors. The housing segment particularly witnessed a significant surge, propelled by continued growth in sales in the higher price category of Rs 1 crore and above," said Shishir Baijal, Knight Frank India Chairman and Managing Director.

Luxury homes

The report noted that homes priced above Rs 1 crore had the highest share ever (40 per cent) in total sales in January-March quarter. The share of such homes in total sales has been increasing each quarter. 

The report said 34,895 homes priced above Rs 1 crore were sold between January and March this year, 51 per cent higher than the same quarter in 2023.

The report said the price category drove home sales growth, recording its second-best quarter with 86,345 units. This was 9 per cent higher than 79,126 units in Q1 2023 and second only to 89,845 units in Q4 2023.

Most homes priced above Rs 1 crore were sold in the Delhi-National Capital Region with 10,558 units followed by Mumbai (7,401) and Hyderabad (6,112).  
In NCR, these homes accounted for 68 per cent of the total sales volume.